This question is multi tiered, but I ONLY need answer for #8. I have included the other parts of the question to provide needed information and context, without violating the 1 question rule. Again, I ONLY need answer for #8. Please and thanks!

This is the question I need an answer to, #8 only.

These are the other questions in case you need additional information.

Question 1 1 pts Questions 1-8 are based on the following information: UA purchased an aireraft from Airbus and was billed 30 million payable in one year. UA is concerned with the USD costs from intermational sales and would like to contrl exchange fiak. The current spot exchange rate is S1.05/ and one-year forward exchange rate is $1.10/ at the moment. UA can buy a one-year option on euro with a strike price of $1.12/ for a premium of $0.02 per euro. Currently, the annual interest rate is 5% in the euro zone and 600 in the U.S This is an case for UA. A/P e A/R Question 4 1 pts If UA wants to hedge the transaction exposure using money market hedge, UA should e borrow PV of euro and buy USD today, and deposit USD in the bank and sit on it. buy PV of euro today using USD, and deposit euro in the bank and sit on it. Question 5 1 pts If UA uses MMH, the guaranteed dollar cost today should be S million (Please write your number in million S and leave 3 decimal points if it is not a whole number. For example, if your answer is $50 million, write your answer as "$50" million. If your answer is $50.3 million, please write your answer as "$50.300" million.). Question 5 1 pts If UA uses MMH, the guaranteed dollar cost today should be S million (Please write your number in million S and leave 3 decimal points if it is not a whole number. For example, if your answer is S50 million, write your answer as "S50" million. If your answer is $50.3 million, please write your answer as "S50.300" million.) Question 6 1 pts If UA wants to hedge the transaction exposure using option hedge, UA should o buy a put option e sell a put option o buy a call option sell a call option Question 6 1 pts If UA wants to hedge the transaction exposure using option hedge, UA should O buy a put option sell a put option o buy a call option O sell a call option Question 7 3 pts If UA hedges the exposure using an option hedge, total option premium: S premium will grow to S interest rate. In one year, if the spot price is $1.1 per euro, the option million will be paid today. The option million in one year at the US (in/out) of the money. So, UA will buy 30 million iS euro at the price of S cost of S (net) dollar costs in one year is $ per euro, which equals to a total million. After the option premium, the total million. Note: Please write your number in million S and leave 3 decimal points if it is not a whole number. For example, if your answer is $50 million, write your answer as "$50" million. If your answer is $50.3 million, please write your answer as "$50.300" million